Facts of the Case

The assessee had filed an appeal before the Income Tax Appellate Tribunal against the order of the Commissioner of Income Tax (Appeals) dated 2 December 2019 for Assessment Year 2012-13. During the pendency of the appeal, the assessee opted for settlement of the tax dispute under the Direct Tax Vivad se Vishwas Scheme, 2020.

An application dated 28 August 2021 was submitted seeking withdrawal of the appeal. The assessee also furnished a copy of Form No. 3 issued by the designated authority under the Scheme, evidencing acceptance of the settlement.

Issues Involved

Whether the pending appeal before the ITAT should be dismissed as withdrawn when the assessee has opted for the Vivad se Vishwas Scheme, 2020 and Form No. 3 has been issued by the competent authority.

Petitioner’s (Assessee’s) Arguments

  • The assessee submitted that he had opted for dispute resolution under the Vivad se Vishwas Scheme, 2020.
  • Form No. 3 had already been issued by the designated authority.
  • Accordingly, the assessee did not wish to pursue the appeal further.
  • A formal request was made for withdrawal of the appeal.

Respondent’s (Revenue’s) Arguments

  • The Departmental Representative raised no objection to the withdrawal request.
  • It was acknowledged that the assessee had chosen settlement under the statutory scheme.

Court Order / Findings

  • The assessee had opted for settlement of tax disputes under the Vivad se Vishwas Scheme, 2020.
  • Form No. 3 issued by the designated authority confirmed acceptance under the Scheme.
  • Since the assessee no longer intended to pursue the appeal, the withdrawal request was valid.

Important Clarification

  • Once an assessee opts for the Vivad se Vishwas Scheme and the designated authority issues Form No. 3, pending appellate proceedings can be withdrawn.
  • The Tribunal will generally dismiss such appeals as withdrawn, provided there is no objection from the Revenue.
  • The order does not adjudicate the merits of the case; it merely records disposal due to settlement. 

Link to download the order -https://itat.gov.in/public/files/upload/1630481966-50alld.pdf

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